Temu moves closer to Brazil debut with approval for tax benefit

Chinese e-commerce retailer Temu has been certified for a tax benefit program by Brazil's government that exempts goods up to $50 from import fees, according to the country's federal revenue office's website on Monday, bringing the company closer to expanding its business to Latin America's largest economy.

WHY IT’S IMPORTANT

Inclusion in Brazil's tax exemption program "Remessa Conforme" is an advantage most cross-border retailers have in the country. Local media have reported Temu has been preparing the groundwork to enter Brazilian markets for a few months, although little detail is known so far.

CONTEXT

Temu is a popular shopping app from China's Pinduoduo PDD. Its rivals Shein, from China, and Shopee, owned by Singapore's Sea SE, are already huge online shopping platforms in Brazil.

THE RESPONSE

Temu did not immediately respond to a Reuters request for comment. Its Brazilian website address said on Monday that Temu's services should be available "soon" in the South American country.